HHgregg is opening three store here in the Orlando area. I have seen the advertising and have a good feel for this market. They could not have picked a worse time for this kind of mass grand opening. We here in Orlando have seen a bigger drop in housing prices than many in the country. New construction has ground to a halt and remodel has slowed. Large ticket appliance sales have also slowed. The restaurants in the area that had waiting times, are now walk up and be served. Some here are saying just wait for the rebates. The tax rebates are generally not large enough for the person to go out and buy one of the profitable front load washers or a big refrigerator. This leaves small ticket items that do not pay the bills. The billionaires interviewed on CNBC this morning where all talking about recession the last half of the year. I'm in at around 10.25 since March, but am watching close. Tough times ahead. Anyone seeing signs of hope in your area?
P.S. What is up with all the spam on this board?
Actually, you are wrong - hhgregg pays their sales people very poorly and they have to depend on selling you the over priced service plans to make any money. The sales people earn a 22% commission on the service plans vs a very small commission on the sales themselves. I know because I work there and if I could find another job I would be out of here in a heartbeat.
The same with a new store that I visited ... too many employees. I do wonder if all those people will be able to make a living. It seems the overhead would be tremendously high. I guess we will see today.
I must agree, this is probably not the best of times for bringing new stores into untested markets, especially those as hard hit as Central Florida. I hear that HGG is expecting these new stores to make millions of dollars in their first weekend.
Sorry boys - not in Florida.
I'm not so sure you guys are correct. Prices are coming down and people are looking at HD TV's now because they think they will have to buy in 2009. $900.00 will buy one of these. Another potential stimulus might be the fact that people are fixing up there existing homes instead of buying new ones. They recently opened a new store in Chattanooga, TN ... it has done very well. Circuit City is not doing much business at all, and I fully expect them to be taken out or close down. Just some thoughts. I guess we will see. I do like the stock closer to 10 dollars. Hedge funds or something else has been playing with the stock lately, and I fully expect it to near 10 dollars.